Market remains resilient despite weak global cues 

NEW DELHI: Defying global trends, equity benchmark indices rallied nearly 1 per cent on Monday. Sensex rose 442.65 points or 0.75 per cent to reclaim the 59,000 level and settled at 59,245.98, while the broader Nifty closed 126.35 higher at 17,665.80.

The rally, mostly stock specific and led by heavyweights such as Reliance Industries and ICICI Bank, came even as most Asian bourses closed in the red due to multiple negative cues. Vinod Nair, Head of Research at Geojit Financial Services, said concerns about the global economy, which is struggling with high inflation and recession, were stoked by mixed job data from the US and a worsening energy situation in Europe.

Strong employment data in the US will give the Federal Reserve the confidence to raise interest rates by another 50-75 bps in the forthcoming policy meetings. In anticipation of a decrease in output, oil prices increased prior to the OPEC+ summit.

“Meanwhile, none of these has impacted the domestic market, which continues to hold an upbeat outlook, bolstered by strengthening local economic statistics and rising corporate demand,” added Nair. Oil prices jumped nearly $3 a barrel on Monday as OPEC-plus plans to cut output targets by 100,000 bpd, while the dollar index scaled a fresh multi-decade high near 110.

Both these developments are a big negative for India. “Recent market outperformance can be largely attributed to banking and financial pack, while the global markets are not showing any sign of respite” said Ajit Mishra, VP - research, Religare Broking.